How to become a sponsor.
Criteria for approval
A firm wishing to act as a sponsor must obtain our approval. Our approval criteria are set out in LR8.6.5R. An applicant must demonstrate to our satisfaction that it:
- is either an authorised person or a member of a designated professional body
- is competent to perform sponsor services
- has appropriate systems and controls in place to ensure it can carry out its role as a sponsor.
The application process
If you think you meet the criteria for approval as a sponsor, as set out in LR8.6.5R, we recommend that you first write to Sponsor Supervision at UKLA Department, Financial Conduct Authority, 25 The North Colonnade, London E14 5HS, outlining:
- your business model and the expected nature and number of intended sponsor transactions a year
- the competence of your proposed sponsor team and details of their sponsor experience (including CVs and transaction history)
- your organisational structure
- your firm’s compliance arrangements
- a nominated contact.
Once we receive your submission, we will give guidance on how the Listing Rules apply. Then, if you want to apply, you must complete and send a sponsor application form and send a non-refundable payment for the application fees as required by FEES 3 Annex 12.
As part of the process, our Sponsor Supervision team staff will visit your firm and do an onsite assessment of your systems and controls within the framework of a transaction review.
Sponsors must demonstrate they have appropriate systems and controls in the areas set out in guidance in LR8.6.12G.
How long the application process will take depends on several factors. We recommend that you contact us at an early stage to discuss the likely timescale.
How we assess a sponsor's competence
Please read the competence requirements for sponsors and applicants for sponsor approval in LR 8.6.7R – LR 8.6.9BG.